Cost sharing occurs when any portion of the total cost of a sponsored project is paid for by Princeton or a third party rather than the sponsor. Cost sharing can include the following:
- Actual cash outlays for items and/or services (travel costs, salaries, materials and supplies, equipment)
- In-kind non-cash contributions with a direct benefit to the project of which the value can be readily determined and justified
A guide is available to assist in entering cost-share elements into the ERA budget module.
Cost Sharing Procedures
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Mandatory vs. Voluntary Cost Sharing
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In general, cost sharing arrangements will fall into one of the following categories:
- Mandatory: Mandatory cost sharing is required by the sponsor, in writing, as a condition of receiving an award.
- Voluntary Committed: Voluntary committed cost sharing is when items are quantified in the proposal without any sponsor requirement. This type of cost sharing requires ODFR approval prior to proposal submission.
- Voluntary Uncommitted: Costs borne by Princeton but not detailed in the proposal or award budget, and not in response to a sponsor requirement.
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Proposal Stage
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Cost sharing should be accounted for in a proposal as follows:
Voluntary Committed
- An Ancillary Review is submitted to the ORPA Director in Princeton ERA.
- If approved, the PI and department follow the steps below for mandatory cost sharing.
Mandatory
- The Department uploads the RFP with the mandatory cost sharing language included into Princeton ERA.
- The PI creates a cost sharing plan.
- Department completes the Cost Sharing Commitment Activity in Princeton ERA.
- For Provost, ODFR, or third party in-kind support, or subrecipient sources, the department obtains cost sharing commitment approvals.
- Department uploads cost sharing approvals into into Princeton ERA.
- Department enters cost sharing budget in Princeton ERA.
Please refer to the Cost Sharing Quick Guide or Detailed Guide for more information.
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Award Stage
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The following should be considered at the award stage:
- If the cost sharing commitment changed between the proposal and award stages, department updates the Princeton ERA through the JIT activity.
- Department fills out the cost sharing budget form for the length of the entire award, regardless of how the sponsor funds the award, and submits the form to ORPA.
- ORPA sets up the award, including the cost sharing commitment, and cost sharing budget, in Prime.
- ORPA distributes the Notice of Award (NOA) to the department, SRA, and the PI.
- Receipt of the NOA is the trigger for the department to move department funds via Assignment Journal (exceptions: AR tuition and faculty AY salary and F & A).
- ORPA initiates Assignment Journals for Provost or ODFR funding.
- Department charges cost sharing.
- Department and SRA monitors cost sharing via reporting.
- At the expiration of the award, SRA verifies all cost sharing commitments have been met.
- If the cost share commitment has not been met, SRA works with the Department to return funds to the sponsor.
- While cost share commitments must be met, the sources of support do not need to match the original cost-share request chartstrings.
Please review the Cost Sharing Quick Guide or Detailed Guide for more information.
Forms
Visit the Forms Library.